- Tyson’s adjusted EPS for Q3 is 91 cents, surpassing estimates of 78 cents and the previous year’s 87 cents.
- Actual EPS stands at 17 cents, down from 54 cents year-over-year (y/y).
- Sales reached $13.88 billion, a 4% increase y/y, exceeding the estimated $13.55 billion.
- Sales volumes saw a minimal decline of 0.1% overall.
- Beef sales volume decreased by 3.1%, missing the estimate of a 2% decline.
- Pork sales volume increased by 1.5%, beating the estimate of a 2.33% decline.
- Chicken sales volume grew by 2.4%, outperforming the estimate of a 1.06% increase.
- Prepared Foods sales volume fell by 2.3%, not meeting the estimated 1.71% decline.
- International/Other sales volume declined by 0.8%, below the estimate of a 1.13% increase.
- Adjusted operating income is reported at $505 million, up 2.9% y/y, surpassing the estimate of $464.5 million.
- Operating margin is 1.9%, a decrease from 2.6% y/y.
- Adjusted operating margin is 3.6%, slightly lower y/y, but above the 3.46% estimate.
- Beef adjusted operating margin stands at -2.7%, as expected.
- Pork adjusted operating margin is 2.4%, higher than both y/y figures and estimates.
- Chicken adjusted operating margin improved to 8.2%, outperforming the prior year and estimates.
- Prepared Foods adjusted operating margin is 9.8%, slightly below the estimated 9.85% but an improvement y/y.
- Average price increased by 3.7% y/y, ahead of estimates.
- Beef average price change is up 10%, significantly higher than the estimated 7.33%.
- Pork average prices dropped by 1.6%, contrary to an estimated increase of 2.3%.
- Chicken prices rose by 1.1%, diverging from the negative estimated change.
- Prepared Foods average price change saw a significant increase of 5.7% y/y, beating estimates.
- International/Other average prices dropped by 3.5%, less than the estimated decline.
- For the year ahead, Tyson anticipates adjusted operating income from $2.1 billion to $2.3 billion.
- They foresee an adjusted operating loss between $(475) million to $(375) million in fiscal 2025.
- Projected adjusted operating income for fiscal 2025 is $175 million to $200 million.
- Tyson expects sales to rise by 2% to 3% in fiscal 2025 compared to fiscal 2024.
- Capital expenditures are predicted to remain at or below $1.0 billion for fiscal 2025.
- The stock has 5 buy recommendations, 9 holds, and 1 sell.
Tyson Foods Inc Cl A on Smartkarma
Analysts on Smartkarma, including Baptista Research, have provided insightful coverage of Tyson Foods Inc Cl A. In a report titled “Tyson Foods: An Insight Into The Beef Market Dynamics & Its Recent Strategies To Optimize Performance!” by Baptista Research, the company’s second-quarter fiscal year 2025 earnings were highlighted. Despite a challenging macroeconomic environment, Tyson Foods posted strong financial results, with sales reaching $13.1 billion and showing year-over-year growth in sales, adjusted operating income, and adjusted earnings per share. The report also noted the impact of a legal contingency accrual on the Pork segment, which slightly affected the overall figure.
In another report by Baptista Research titled “Tyson Foods: Prepared Foods Segment Growth & Other Major Drivers,” the analyst highlighted the company’s solid performance in fiscal 2025, particularly in the Chicken segment. Tyson Foods achieved the best first-quarter adjusted operating income in eight years, driven by its diversified multi-protein portfolio. Despite challenges in the Beef segment, Tyson Foods managed to surpass expectations, thanks to improved results. Moreover, the International operations of the company also showed significant profitability improvements, contributing positively to its overall performance.
A look at Tyson Foods Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Tyson Foods Inc Cl A shows a positive long-term outlook overall. With high scores in Value and Dividend, the company is deemed to be solid in terms of financial value and commitment to rewarding shareholders. However, lower scores in Growth, Resilience, and Momentum indicate that the company may face challenges in expanding its operations, managing risks, and maintaining market traction.
Tyson Foods, Inc. is a major player in the production and distribution of chicken, beef, pork, and prepared foods. Its products are widely distributed through various channels including grocery retailers, wholesalers, and industrial food processing companies. While the company demonstrates strong value and dividend performance, areas such as growth, resilience, and momentum might require further attention for sustained success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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